Investment Policy & Fees

General Philosophy

In concert with its stated purpose to encourage increased philanthropy that will benefit the charities and communities located in this region for generations to come, the primary objective of The Foundationis to provide protection of principal and reasonable income and capital growth. This objective is pursued as a long-term goal for maximum reward without exposure to undue risk.

 

The Finance Committee recognizes that community foundations are an increasingly important source of funds for both current operations and future capital expenditures when required. Growth of the asset base through investment return and new contributions will help maintain the purchasing power of future grant awards. The Finance Committee works with the Investment Manager to see that all Foundation assets are invested with care, skill, diligence and prudence, and according to all rules, regulations and laws currently in force.

 

The Finance Committee and Investment Manager are guided by a detailed Investment Policy Statement that describes the prudent investment process that The Foundation deems appropriate. The long-term stated investment objective is to maximize investment return with the least amount of risk through a combination of capital appreciation and income. Risk should be decreased through diversified investment in equities, fixed income, cash and other Finance-Committee approved instruments. Diversification will be required within investment groups by industry and individual company. Though it is the intent of the trustees to achieve a long term above average return, that intent does not include taking extraordinary risks or engaging in investment practices not commonly considered prudent.

Rebalancing of Strategic Allocation

The percentage allocation to each asset class may vary as much as plus or minus 5% depending upon market conditions.

Custom Benchmarks (excludes cash equivalents):
Russell 1000 Value, S&P 500, Russell 1000 Growth, Russell 2000 Value, Russell 2000 Growth, MSCI EAFE, BC Aggregate, Barclays Capital Government/Credit Intermediate, Barclays Capital Aggregate.

Investment Fees; Spending Policy; Administrative Fees

Fund statements produced semiannually provide returns for endowed funds net of investment fees. The Foundation's annual spending policy calls for 4.5 percent of a fund's 16-quarter trailing average designated for grants plus The Foundation administrative fee.

Full Investment Policy Available Upon Request

To view The Foundation's complete investment policy, please call The Foundation office at 570-752-3930 and request a copy. If you would like a copy of The Foundation's most recent audit, please call the office at (570)752-3930.